It appears you are unfamiliar with public choice theory[1]. It turns out you are correct in a theoretic sense that very rarely works out in practice. Blaming 'the many' for failing democracy might be satisfying, but doesn't do any good.

[1] https://en.wikipedia.org/wiki/Public_choice

The issue is that special interests have a much more focused need for the laws (or may have more money for lobbying or "buying" politicians).

There are import tariffs on sugar that benefits sugar producers while "harming" society (and other countries that want to import sugar).

Plutocracies work differently.

America is not a democracy